This follows feedback from the wider financial services sector.
David Kenmir, managing director of regulatory services at the FSA, said: “Through our handbook review programme, the FSA is removing regulations where costs outweigh the benefits. The proposed merger of customer functions offers a further £1 million annual saving for firms.”
Despite the FSA’s paper stating there were no customer functions in place within the mortgage and general insurance (MGI) sectors, a number of commentators have backed the decision to improve cost-effectiveness of the wider financial market.
Vic Jannels, managing director for All Types of Mortgages (AToM), said: “Based on the proposed savings, this can only be a good thing and I hope this will streamline and speed up the process for approvals. But I would ask whether this means the FSA will be reducing the number of people in this department in order to make these savings?”
Bill Warren, director of Complete Mortgage and Loans Service, added: “It will simplify things and is helpful, but I remain to be convinced about the proposed savings. This impacts larger firms more than medium to small firms. Most directors only carry three or four approved individuals, so for smaller firms it doesn’t make an awful lot of difference. But it does make things easier for firms and the FSA to manage.”
Andy Frankish, managing director for Mortgage Talk, said: “Any savings that can be made are very welcome. As an approved person, I know what we had to go through on ‘Mortgage Day’. But the regulator has had time to reflect and it is good to see it is taking the time to improve and streamline the process. It’s definitely to be encouraged, as the approved person regime at the moment is quite laborious.”
